Bill > SB122

This bill revises the employer contribution rates for three specific Montana retirement systems: the Highway Patrol Officers' Retirement System (HPORS), the Sheriffs' Retirement System (SRS), and the Game Wardens' and Peace Officers' Retirement System (GWPORS). Currently, these systems have fixed contribution rates of 38.33%, 13.115%, and 10.56% respectively for the 2023-2024 fiscal year. Starting July 1, 2024, the bill introduces an actuarially determined employer contribution (ADEC) rate with important constraints: the contribution rate can change by no more than 0.5% annually (either up or down), and cannot be set lower than the current base rates. The new contribution rates will be calculated annually by the public employees' retirement board's actuary and will consist of three components: a rate to pay off the legacy unfunded liability (to be amortized over 25 years), a rate to pay for contemporary unfunded liability (to be amortized over 10 years), and a rate to cover the normal cost of benefits as they accrue. The bill also includes a special provision for the Highway Patrol Officers' system that requires a $500,000 annual transfer from the state special revenue fund, which will terminate once the system reaches 100% funding. The changes aim to provide more flexible and sustainable funding for these public safety retirement systems while ensuring minimum contribution levels are maintained.

Government Affairs

https://bills.legmt.gov/#/laws/bill/2/LC0020